Entity: CHARGEBACK
A chargeback is a process where a customer disputes a credit or debit card transaction, leading to a refund of the transaction amount. It involves returning money to the payer, typically a consumer, after a successful dispute against an item on their account statement.
CHARGEBACK
Etymology
The term 'chargeback' originated from the concept of reversing a financial transaction, specifically related to credit card or debit card payments.
Definition
A chargeback refers to the process of returning money to a payer, usually a consumer, following a successful dispute against a transaction on their account statement or transactions report.
Historical Context
Chargebacks have become a common practice in the financial industry with the rise of electronic payments and online transactions. They serve as a consumer protection mechanism against fraudulent or unauthorized transactions.
Cultural Significance
Chargebacks play a crucial role in maintaining trust between consumers and financial institutions by providing a means to address billing errors, unauthorized charges, or merchant disputes.
Related Concepts
- Refund
- Dispute Resolution
- Consumer Rights
See Also
A request for a refund of money spent on a credit card or debit card transaction, initiated by the customer due to a dispute.